This is why Econ 101 is important. There are circumstances where much of the burden of increased production costs is borne by the producer. When demand is very

This is why Econ 101 is important. There are circumstances where much of the burden of increased production costs is borne by the producer. When demand is very elastic (consumers are price sensitive, or there are many good substitutes), and supply is inelastic (its hard to change the level of output), the suppliers will eat the cost.